Generic Brands vs Named Brands: Which Do You Choose?

Saving money on food is the pride of most of us these days, and as a result of the downturn in the economy many are tightening their belts by turning to generic brands.

It makes sense that when there’s a shift in the amount of disposable income, or the possibility there may be difficult times ahead, that we begin to look for ways to save.

However, this can be difficult when it comes to food – saving pennies while sacrificing on taste is a common mistake.

Cooking has always been a favourite pass time of mine, developed at an early age with a love for baking with my mum.

These days I try to come up with well-rounded meals that are both tasty and healthy, and I rarely cook with pre-packaged products. This helps me to ensure we are eating well and sticking within a budget too. So, I appreciate good tasting food at a reasonable price.

I think it’s true to say that many stores realise the potential of the generic food brand. You can now find a much better range in store, including some gourmet and organic generic foods, and prettier labelling to boot.

The Food Marketing Institute report that:

• 93% of retailers plan to increase the number of store label products in upcoming months.
• 15% of supermarket sales are store labels, compared to 14% in 2008 and 11.5% in 2007.
• There was a 10.8% increase in store label sales in the recent fiscal year. Named brands grew by only 2.5%.

As a matter of fact, many of the store brands are actually made by national brands and relabelled for the store.

So, it’s really worthwhile checking out food labels, and making comparisons before you purchase to see if you can get a good deal.

Luke Schepen a spokesman for Woolworths, had this to say:

“In many instances, supermarket private label products are exactly the same as the branded equivalent: same ingredients, same recipe, same factory, same manufacturer.” He also said the company benchmark their products against branded competitors regularly, “To ensure we can match or better them in terms of quality, ingredients, nutritional content and value.”

Can you tell a difference between the generic brand and the named brand?

While I heartily support saving money by purchasing generic brands, I do think you need to exercise a little caution.

Here are 5 tips to help you with generic brands

1. Watch how much you eat
There may be a tendency to eat more of the generic food item because it was cheaper.

2. Taste is important
If the cheaper product isn’t acceptable in taste it could end up tarnishing your whole meal, which is a complete waste. Don’t compromise on taste!

3. Check the ingredients carefully
Sometimes the cheaper brands contain more salt, saturated and trans fats, and more calories than the equivalent named brand.

4. Don’t make assumptions
Don’t just assume that the generic brand is cheaper, particularly when the store has special offers or coupon deals (many stores don’t offer coupons with the generic item) – do a cost comparison by unit price.

5. Check prices carefully
Also be aware that most stores have two levels of generic brands – a premium label and a value label – the premium label is often similar in price to the branded version.

So, how do you make savings at the supermarket? What do you purchase from the generic brands? And do you notice a difference in taste, quality or ingredients?

Photo source: Zela.